Loyalist expands Tully gold project east, west, and at depth

Loyalist Announces Exploration Thesis at the Tully Gold Project - Expansion East, West and at Depth

(TheNewswire)

 

Toronto, Ontario – TheNewswire – June 2, 2026 – Loyalist Exploration Limited (CSE:PNGC) (“Loyalist” or the “Company”) is pleased to announce its updated exploration thesis and a proposed conceptual diamond drill program totalling approximately 21,674 metres in 70 drill holes designed to test this thesis at its Tully Gold Project (“Tully” or the “Project”), located approximately 25 kilometres northeast of Timmins, Ontario. The proposed program has been designed to test the along-strike and down-dip extensions of known gold mineralization and to evaluate the potential to significantly expand the area currently encompassed by the Project’s historical mineral resource estimate (see below). The program will also assess the broader exploration potential of the Tully Project.

Program Highlights:

• Completion of a 3D magnetic inversion to refine the interpretation of key lithological contacts at depth 

• Step-out drilling to test east and west extensions of known mineralized zones  

• Down dip drilling to test depth extension and plunge of identified mineralized zones 

• Strategic infill drilling to increase geological confidence and data density in key target areas. 

• Targeting of mafic tuff units, which have demonstrated a strong association with gold mineralization. 

• Evaluation of structural controls and geophysical anomalies interpreted to be associated with gold mineralization. 

The proposed exploration program is conceptual in nature and remains subject to financing, regulatory approvals, and the receipt of all required exploration permits. The program is expected to commence with a 3D inversion of existing high-resolution airborne magnetic survey data to further refine the interpretation of the contact between the weakly magnetic to non-magnetic hanging-wall sedimentary rocks and the strongly magnetic footwall ultramafic units.

Building on the Company’s updated geological interpretation, a conceptual multi-phase diamond drilling program comprising approximately 21,674 metres in 70 drill holes has been designed to systematically test the exploration thesis and assess the potential to significantly expand the known gold mineralized footprint at the Tully Project.

Phase 1 (the “West Extension”) consists of 24 holes totalling approximately 7,913 metres designed to test the along-strike extension of gold mineralization to the west of the main mineralized zone. Phase 2 (the “East Extension”) consists of 22 holes totalling approximately 7,161 metres designed to test the along-strike extension to the east. Phase 3 (the “Deep” targets) consists of 24 holes totalling approximately 6,600 metres designed to test the down-dip and plunge extension of mineralization beneath the historical resource area. Hole lengths range from approximately 125 to 700 metres, with collar dips ranging from approximately -47° to -80° and azimuths oriented to test interpreted mineralized structures.

This initiative follows the Company’s recent engagement of P&E Mining Consultants Inc. to advance an updated Mineral Resource Estimate (“MRE”) for the Tully Project, prepared in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves (the “CIM Standards”) and disclosed in accordance with NI 43-101. Subject to the successful completion of an updated MRE, the Company also intends to advance a Preliminary Economic Assessment (“PEA”) on the Tully Project. Data generated from the proposed drill program (subject to timing) is expected to support these studies and to test for opportunities to expand the known mineralized footprint.

Table 1: Summary of Proposed Conceptual Drill Program

Target Area	No. of Holes	Total Metres (approx.)	Hole Length Range (m)	Exploration Objective
Phase 1 – West Extension	24	7,913	250 – 451	Test along-strike extension of mineralization to the west
Phase 2 – East Extension	22	7,161	250 – 401	Test along-strike extension of mineralization to the east
Phase 3 – Deep Targets	24	6,600	125 – 700	Test down-dip and plunge extension beneath the historical resource area
Total	70	21,674	125 – 700	—

Note: Drill hole locations, lengths, azimuths, and dips are conceptual planned values only. Final hole locations and parameters are subject to change based on field conditions, geological observations during drilling, regulatory and access considerations, and Company priorities. Coordinates of planned collars are referenced to NAD83 UTM Zone 17N.

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Figure 1: Plan map illustrating the proposed drilling at Tully, including historical drill holes with intercepts over 1.5 g/t Au, bedrock geology, key structural features, and the trace of a prominent magnetic boundary.

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Figure 2: Long section (looking north-northwest) showing the proposed drill holes at Tully, including historical drilling with intercepts greater than 1.5 g/t Au and the interpreted outline of the mafic tuff unit.

“We are excited to initiate this program of exploration at Tully,” said Errol Farr, President and CEO of Loyalist. “It is designed not only to significantly expand the known mineralization but also to unlock the broader potential of the project. With strong geological indicators and a clear exploration model, we believe Tully has significant upside.”

 

About the Tully Gold Project

The Tully Gold Project comprises a 458-hectare mining lease located in a well-established mining district with excellent infrastructure. It hosts a historical mineral resource estimate (not treated as current by Loyalist) of 107,000 ounces of gold (capped), comprising 358,000 tonnes grading 6.56 g/t Au (indicated) for 76,000 oz Au and 184,000 tonnes grading 5.17 g/t Au (inferred) for 31,000 oz Au, as estimated by Francis Minerals Ltd. and dated December 15, 2013. The estimate is not NI 43-101 compliant and has not been verified by a Qualified Person. The project features numerous high-grade gold drill intersections and is advancing toward permitting, with additional exploration planned for 2026.

 

*Statement Regarding Historical Mineral Resource Estimates The Tully deposit historical Mineral Resource Estimate (“MRE”) is unclassified and does not comply with CIM Definition Standards on Mineral Resources and Mineral Reserves as required by NI 43-101. The MRE was taken from a report titled “Tully Deposit Mineral Resource Estimate” authored by Francis Minerals Ltd. and dated December 15, 2013. Investors are cautioned not to treat the estimate as current or rely on the estimate in making an investment decision. The MRE is included herein to provide shareholders with background on the rationale for advancing the asset. A qualified person has not done sufficient work to classify this historical MRE as current mineral resources, and the Company is not treating this historical MRE as a current estimate. It is uncertain whether following evaluation and/or further exploration, the historical MRE will be able to be reported in accordance with NI 43-101.

*Notes to Historical Mineral Resource Estimate

1. CIM Definitions were followed for classification of Mineral Resources.

2. Mineral Resources are estimated at a cut-off grade of 2.5 g/t Au.

3. Mineral Resources are estimated at a gold price of $1,510/oz and a metallurgical recovery of 92%.

4. High-grade assays are capped at 70 g/t Au.

5. Bulk density of 2.71 t/m³ was used.

6. Numbers may not add due to rounding.

 

Qualified Person

Curtis Ferron, P.Geo. (ON), principal geology consultant for Loyalist and a “Qualified Person” as defined by NI 43-101, has reviewed and approved the technical content of this press release.

 

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) have reviewed or accept responsibility for the adequacy or accuracy of this release.

 

About Loyalist Exploration Limited

Loyalist Exploration Limited is a mineral exploration company concentrating on acquiring, exploring, and developing quality mineral properties in Canada. The Company is currently focused on its “Buy Timmins” strategy, with the recent acquisitions of the Tully gold property, the Loveland nickel/copper/gold property, the Gold Rush gold/silver property, and the DeSantis gold property, all located in the Timmins, Ontario mining district.

 

For further information please visit the Company’s website at www.loyalistexploration.com or contact:

 

Loyalist Exploration Limited

Errol Farr, President and CEO

Email: efarr@loyalistexploration.com

Tel: 647-296-1270

 

This news release includes certain “forward-looking statements” which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties, and other factors involved with forward-looking information could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, capital market conditions, restriction on labour and international travel and supply chains, and those risks set out in the Company’s public documents filed on SEDAR+. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

 

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